A home inspection is performed by a certified home inspector to determine the condition of a property and to find out if there any safety of compliance issues that the home or property may have.
Home inspectors are typically hired by real estate professionals and homebuyers when a home is on the market. It is not required except for FHA loan termite inspection requirements, but it is always advisable for a potential home buyer. A home inspection is not to be confused with a home appraisal.
The appraiser seeks to establish a fair market value for the property, while an inspector looks for problems with the condition of the house that will need to be remedied. Inspections are never required by law, to the best of our knowledge, but some Federal Housing Administration loans will require a termite inspection report to be filed before closing, which is something that home inspectors do.
Most real estate agents representing the buyer will advise them to get a home inspector to check things out before closing. Spending a few hundred dollars for an inspection is preferable to buying a house with significant problems that could cost thousands and thousands of dollars, when such problems might not be obvious to the average home buyer.
Sellers are usually not advised to hire an inspector, since the inspector will usually try to reveal as many problems as they can find.